Tax Haven Crackdown

Germany, Britain, America, France and other countries are in hot pursuit of citizens hiding assets in Liechtenstein banks.  The BND (German “Spy” Agency) paid Heinrich Kieber (former employee of the Liechtenstein bank owned by the Royal Family known as LGT Bank) more than 4 million Euros ($7 Million U.S.) for computer discs with the names of more than 1,400 German nationals illegally avoiding taxes (hiding assets with LGT Bank). German Tax Investigators have searched homes and offices of business elite, sports and entertainment figures and have claimed victim #1, Klaus Zumwinkel, the former head of Deutsche Post, who has been arrested.

Current estimates by the International Monetary Fund, the Organization for Economic Cooperation and Development (OCED), indicate that tax havens have 5 to 7 trillion dollars in assets which include untaxed funds from unreported income and money laundering. 

Offshore tax havens cost Germany $45.8 billion (U.S.) per year (30 billion Euros), and the U.S. loses over $100 billion (U.S.) per year in tax revenues.  Foreign governments (now using the Financial Action Tax Force [FATF]) have seized computer discs from the LGT Bank to investigate over 1,800 international citizens for tax evasion including as follows:

1. Germany over 1,400 citizens
2. U.S. over 100 citizens
3. Britain over 100 citizens
4. France over 200 citizens
5. Australia over 20 citizens
    with investigations commencing in
    Canada, Sweden and Norway.

The U.S. is currently investigating more than 100 U.S. citizens for civil tax fraud and criminal tax evasion.  Linda Stiff, IRS commissioner, said on 2/27/08, “Combating offshore tax avoidance and evasions are high priorities for the IRS.  It should be clear from recent events that there is no safe hiding place for the proceeds.”

Please see the following articles:

1) Germany makes demands on Liechtenstein over tax fraud

2) European tax scandal reaches U.S.

3) Tax haven crackdown

4) World’s tax havens targeted in Cloak-and-briefcase offensive

5) Secrets out

6) Italians gripped by leaks naming Liechtenstein account holders

Gary S. Wolfe is an expert on Offshore Tax Havens and Unreported Income and will be holding a seminar at the Four Seasons (Los Angeles) in May 2008 on this topic.

TAX HAVEN ABUSES: THE ENABLERS, THE TOOLS AND SECRECY

• US Senate Permanent Subcommittee on Investigations (8/1/06 Report)

Summary
Senate Subcommittee investigation issued 74 subpoenas, conducted more than 80 interviews, reviewed over 2 million pages of documents, estimates that:

1) Off-shore assets of high net worth individuals now totals $11.5 trillion;

2) More than 50 off-shore jurisdictions with assets total $4.8 trillion;

3) Off-shore assets of high net individuals from North America (U.S.) $1.6 trillion;

4) Individual U.S. taxpayers illegally evade up to $70 billion per year in U.S. taxes by offshore tax schemes;

5) Corporate U.S. taxpayers illegally evade up to $30 billion per year in U.S. taxes by offshore tax shelters

Please click below for complete article
Tax Haven Abuses: The Enablers, The Tools, & Secrecy